Uploaded By; NIZAM UL HAK MOHMAND NIZAMULHAKUE@GMAIL.COM

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2. CHINA PAKISTAN ECONOMIC CORRIDOR
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3. SEQUENCE
 History of Sino-Pak ties
 China Pakistan Economic Corridor (CPEC)
 Objective of CPEC
 Advantages of CPEC
 Shortcoming of CPEC
 Recommendations
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4. HISTORY OF SINO-PAK RELATIONS
 Pakistan–China relations began in 1950
 Strategic alliance was formed in 1972 and economic co-operation began in 1979
 China had invested $20 billion in various projects
 Mega infrastructural projects in Pakistan
 Gwadar Port, the Coastal-Highway linking Karachi with Gwadar, Karakoram Highway,
the Chashma nuclear power plants, and a number of hydro-power projects.
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5. CHINA-PAK ECONOMIC CORRIDOR
 The kkh was started in 1959 and was completed in 1979 (open to the public since
1986)
 Length 1,300 km (Pakistan 887 km ) China 413 km
 It connects China's Xinjiang region with Pakistan's Gilgit–Baltistan and Khyber
Pakhtunkhwa regions
 Major cities Hasanabdal, Abbottabad, Thakot, Chilas, Gilgit, Aliabad, Sust, Khunjerab
Pass, Kashgar
 The importance of Karakoram Highway
 Chinese companies
 Tourism in Pakistan
 Transportations
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7. THE KKH HIGHLY CONTRIBUTE ECONOMIC
ACTIVITIES OF BOTH COUNTRIES EXPORT AND IMPORT
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8. GWADAR, AN ECONOMIC GATEWAY
 On 8 September 1958 prince Aga khan karim purchased the Gwadar enclave from Oman
for $3 million, and gave it to Pakistan and it officially became part of Pakistan.
 Gwadar Port is located at the mouth of the Persian Gulf.
 Gwadar is a planned free trade port.
 Gwadar Port is a strategic developed jointly by the both countries
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CONT…
National Highway Authority (NHA) began construction of the 653 km-long Makran Coastal
Highway linking Gwadar with Karachi
 In 2004, Pakistan's NHA began construction of the 820-km long M8 motorway linking Gwadar
with Ratodero in Sindh province Turbat, Hoshab, Awaran and Khuzdar
 In 2007 Civil Aviation Authority of Pakistan acquired 6,000 acres (17-24 km2) to construct a new
greenfield airport, at an estimated cost of Rs 7.5 billion.

10. GWADAR ECONOMIC ZONE
 GDA was established to promote industrial activities in mega port city of Gwadar
 China focused on the fast-track construction of roads, other infrastructure and public
buildings
 In 2013, Gwadar Port operations were officially handed over to China,
 To connect china with Gwadar through railway track has already begun.
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11. PAK CHINA ECONOMIC CORRIDOR 11
OUTFLOW OF GOODS FROM WESTERN CHINA AND CARS THROUGH
GWADAR

12.  Gwadar-Khunjerab-Kashgar rail
network
 Connecting the maximum number of
population through a network of
highways and railways
 Six-lane motorway to be built from
Karachi to Lahore. MoU’s signed with
China
CURRENT PCEC DEVELOPMENT
Gwadar-Khunjerab-Kashgar rail network
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13. OBJECTIVES OF PCEC
 Increase the volume of trade between Pakistan and china.
 Take full advantage of Preferential trade agreement (PTA) and free trade agreement
(FTA).
 Increase export to china, recently export to china is $3.14 billion.
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14. CONT….
 Pakistan and china are second largest partners in south Asia, this will help to retain
partnership
 Widen Karakorum high way and open new economic corridor from china to Gwadar
 Approximately reduce 10000 km distance and it is the shortest route
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15. PAK CHINA ECONOMIC CORRIDOR 15

16. CONT.….
 Expand trade with Afghanistan and it help both countries to play their role in post-2014
Afghanistan
 Expand trade with Russia by providing trade route till Gwadar port
 Development of infrastructure along Pakistan
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17. CONT….
 China access to the Indian Ocean with the aim of widening its geopolitical influence and
military presence in the region
 Job opportunities and economic development in Baluchistan
 Increase Chinese investment, Pakistani investment in china will also be encouraged
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18. CONT….
 Regional peace, prosperity and elevate the life of poor people of south Asia
 Enhance trade among Pakistan, China, Gulf States, Central Asia and Africa
 China is interested to extend the Iran-Pakistan pipeline to its western territory
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19. ADVANTAGES OF PCEC
 Can benefit new emerging regional cooperation
 Save time, cost and freight/Commodities charges
 Facilitate trade, have Economic Zone en-route and will allow reaping of full benefits of
development, economic and social uplift
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20. CONT….
 Increase the economic collaboration between both countries by connecting western
china to Gwadar
 Regional stability in Asia awa in whole world
 Pakistan economy will Boost
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21.  Pakistan can avail great opportunities from chine’s expert in various sectors like
energy, Technology and Education sector
 Create new employment opportunities
 Pakistan and china both collectively target the half of the population of the
world, it will provide great opportunity for both countries to expend their market
CONT….
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22. • FTA leads to threat for local markets and local manufacturers
• Disturb of local industries
• Difficult to compete china’s product in market
• Increase the ratio of unemployment
• Dependent to China
THE SHORTCOMINGS OF PCEC
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23. Pakistan-China trade
increased by 17.6% to
a total of US$ 12.4
billion in 2012.
China export to Pakistan is
9.3billion
Pakistan’s export to china is
3.14 billion
9.3
3.14
Trade Deficit
HUGE DIFFERENCE BETWEEN BALANCE OF
PAYMENT TRADE DEFICIT
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24. CONT….
Focus on import rather than Domestic production
Threat for potential group
Due to free trade agreement with china leads to lack of
competition.
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25. RECOMMENDATIONS
• Pakistan should create stability In its terrority to implementation on that plan
• To make positive balance of trade Pakistan should increase the exports of:
• Agriculture products
• Textile products
• Leather
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26. Precious stone
Sports goods
Textiles products
MAINTAIN FAVORABLE BALANCE OF TRADE
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27. CONT….
• Restriction on that commodities which is harmful for our industries
• To make a frame work to use Domestic currency for trade (barter system)
• Develop auto industries rather than focusing on import parts.
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28. CONT….
Should provide latest
technology
Think tank should
collaborate by both
countries
Implementations of
agreements should be
addressed
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29. CONT….
Pakistan should
implement and handle
policies up to the mark
Utilization of raw
material and value
added process should
be done in Pakistan
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30. Make efforts to diversify market in China
Security issues, law and order system are main obstacles in the way of Pak-china
economic corridor
Pakistan should develop the training centers and Chinese language centers in order to
make effective communications
CONT…
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31. Natural Gateway for China.
Positive response by both countries through mutual cooperation.
Both countries are keen to enhance trade activities.
Infrastructural improvement and Development of Dams.
Stability of economy by investment in different sectors.
Yet.
“Our friendship is “higher than the mountains and deeper than the oceans.
UPSHOT
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